Section 708 of the Corporations Act summary Background In certain circumstances (detailed in the Corporations Act) an issue of securities can be made to potential investors without a disclosure statement, i.e. if the potential investors are deemed to have sufficient investment knowledge to make an informed decision. These investor groups are:- Personal Offers Investors who by an act or an action have indicated a willingness to consider participation in personal offers. The ability for a company to accept offers from these investors in limited to 20 investors, with an aggregate investment of less than $2 million in any given 12 month period. In certain circumstances Venture Forth client's can increase the annual capital raising threshold to $5 million. Companies cannot accept investments from these persons through intermediaries, unless they meet certain criteria. Venture Forth is fully appraised of the requirements of this legislation and is able to assist clients to ensure full compliance. Professional Investors A person who controls or manages at least $10 million of investment in securities, or holds a dealer's license or investment adviser's license. Sophisticated Investors A person who has net assets of $2.5 million or has gross income for each of the last two financial years of at least $250,000 a year. A qualified accountant must certify that the person/entity satisfies this criteria and this certification must be no more than two years old. To view the Section 708 of the Corporations Act 2001 please visit http://law.ato.gov.au/atolaw/view.htm?locid='PAC/20010050/708(10) |
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